Nevro Corp. (NVRO - Free Report) reported second-quarter 2019 loss of 91 cents per share, wider than the Zacks Consensus Estimate of a loss of 89 cents. The company had incurred loss per share of 35 cents in the year-ago quarter.
The Zacks Rank #4 (Sell) company posted revenues of $93.6 million, outpacing the Zacks Consensus Estimate of $88 million. The figure also surpassed the company’s expectations. However, revenues dropped 2.6% year over year.
In the quarter under review, international revenues were $15.5 million, down 4% year over year but up 2% at constant currency (cc).
U.S. revenues for the quarter totaled $78.1 million, reflecting a 2% year-over-year drop. The decline was due to the company’s decision to diminish the impact of high volume product orders in the quarter.
Gross profit totaled $63.9 million, down 5.6% year over year. Gross margin was 68.3%, down 240 basis points.
Operating expenses rose 18.9% year over year to $90.5 million. Research and development expenses totaled $14.9 million, up 30.8% year over year.
Sales, general and administrative expenses were up 16.8% year over year to $75.6 million.
For 2019, Nevro expects worldwide revenues between $368 million and $374 million. The Zacks Consensus Estimate for the same is pegged at $367.9 million, within the projected range.
Nevro exited the second quarter on a weak note. The company’s domestic and international revenues deteriorated year over year. Loss per share widened on a year-over-year basis. Significant contraction in gross margin raises concern. Surge in operating expenses adds to the woes.
On the bright side, increased R&D expenses reflect focus on innovation. The guidance for 2019 is also promising.
Earnings of MedTech Majors at a Glance
A few top-ranked companies, which posted solid results this earnings season, are Stryker Corporation (SYK - Free Report) , Baxter International Inc. (BAX - Free Report) and Intuitive Surgical, Inc. (ISRG - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stryker delivered second-quarter 2019 adjusted earnings per share of $1.98, beating the Zacks Consensus Estimate by 2.6%. Its revenues of $3.65 billion surpassed the consensus estimate by 1.4%.
Baxter delivered second-quarter 2019 adjusted earnings per share of 89 cents, which surpassed the Zacks Consensus Estimate of 81 cents by 9.9%. Its revenues of $2.84 billion outpaced the consensus estimate of $2.79 billion by 1.9%.
Intuitive Surgical reported second-quarter 2019 adjusted earnings per share of $3.25, which beat the Zacks Consensus Estimate of $2.85. Its revenues of $1.1 billion surpassed the Zacks Consensus Estimate of $1.03 billion.
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